Funds assigned to an Irrevocable Funeral Trust will be available to cover the cost of the funeral and burial expenses at the time of need.
The most common reason for assigning a life insurance policy to an Irrevocable Funeral Trust is to protect the funds if you ever go into a nursing home and need to apply for Medicaid.
The funds assigned to the Irrevocable Funeral Trust are not countable when determining eligibility for Medicaid. The funds will be available to cover the cost of the funeral and burial expenses at the time of need.
Keep in mind that, since you transferred the funds to the trust to qualify for Medicaid, they will not be available for anything else. The funds are protected for use only towards funeral and burial expenses.
Keep in mind that you can still choose obtain a final expense policy to cover future funeral and burial or cremation costs without assigning the funds to an Irrevocable Funeral Trust. You can always do that later if needed to determine eligibility for Medicaid.
Key aspects of our strategy
Protecting funds if you ever go into a nursing home and need to apply for Medicaid.
The funds assigned to the Irrevocable Funeral Trust are not countable when determining eligibility for Medicaid.
The funds will be available to cover the cost of the funeral and burial expenses at the time of need.